Malaysia To Expand Use Of Palm Oil In Biofuels
May 30, 2019

As one the world’s major palm oil producers, Malaysia will continue to play a key role in ensuring that the commodity remains a sustainable and eco-friendly fuel replacement for world markets.

Minister of International Trade and Industry Datuk Darell Leiking said in a statement on May 25, palm oil was a viable option to reducing the country’s dependency on fossil fuels, as it had tremendous potential as a renewable energy source, according to Bernama.

“As the largest exporter and second largest producer of the palm oil in the world, we sit in a position of ensuring this commodity evolves into an industry that brings much benefits to global market, in particular, the energy and transportation ecosystem,” he added.

Malaysia’s national automotive policy is expected to allow for a higher percentage of palm-biodiesel blends over the next few decades, according to Leiking.

The government plans to include a “B20/B30-ready” specification for vehicles in a review of the policy, Leiking said, adding that Malaysia plans to double its biofuel programme to B20 by 2020, which mandates fuel be blended with 20 per cent palm-biodiesel.

“While there has been opposition against the current practices of planting palm oil recently, it only shows that there is demand and potential for the sector to emerge an important player to meet the needs of the energy and transportation sectors,” Leiking said.

The European Union earlier this week published regulations setting new criteria for the use of palm oil in biofuels. The rules, which will have a certification system and restrict the types of biofuels from palm oil that may be counted toward the EU renewable-energy goals, will come into force on June 10.